G20 has replaced G7 as crisis financial body: India

Agencies|

Nov 18, 2008, 01.20 PM IST

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NEW DELHI: India said Tuesday that the G20 group of developed and emerging nations has replaced the G7 club of rich industrialised countries as the world's most important body to tackle economic problems.

"The G20 has come to stay as the single most important forum to address the single most important issues of the world," said Indian Finance Minister P. Chidambaram in New Delhi.

He was speaking to the India World Economic Forum after attending a meeting of world leaders in Washington last weekend to discuss the global financial crisis.

"The G7 has belatedly recognised that unless they engage with emerging economies there can be no solution to world problems," Chidambaram told the international business forum.

India has long argued that it and other large emerging economies should have a greater voice in global financial decision-making.

Chidambaram's remarks came after neighbouring China said at the weekend that the meeting of 20 major economies was helpful in tackling the global financial upheaval, and urged more cooperation to prevent a global recession.

The G20 leaders, including India's Prime Minister Manmohan Singh, agreed Saturday on an action plan meant to restore global growth and prevent future financial upheaval, while also promising new spending plans, a trade deal and a set of reforms.